Stock Market & Financial Investment News

Sequester risk just kicked down road, says Wells FargoWell Fargo believes that the sequester issue still poses risk to government services companies, as most of the automatic spending cuts were delayed for only about two months. The Pentagon still faces $50B in automatic cuts that would be spread out over just seven months in FY13, the firm notes. Wells maintains an Underperform rating on the government services sector sector, and it identifies the following companies as belonging to that sector: Booz Allen Hamilton (BAH), CACI International (CACI), ICF International (ICFI), ManTech International Corporation (MANT), NCI (NCIT), and sAIC (SAI). The firm also maintained Underperform ratings on all of the individual stocks listed.

CACI awarded $48.6M task order contractCACI International has been awarded a task order contract valued at $48.6M to provide operational support services for the Office of the Under Secretary of Defense. The four-year, eight-month task order was awarded under the Alliant contract vehicle and represents continuing work for CACI in the company’s Business Systems market area. Under the terms of the award, CACI will continue providing on-site operational support to the mission systems of OUSD(C) in areas relating to system maintenance, information security/assurance, integration, conversion, migration, report generation, documentation, training, and guidance. Over 140 federal agencies rely on enterprise-level business systems built by CACI to manage their budgets, accounting, payroll, and human resources functions.

Booz Allen reaffirms FY16 adjusted EPS $1.60-$1.70, consensus $1.64Reaffirms FY16 revenue view of "roughly flat," with a range of two percent growth to a two percent decline. Consensus is $5.3B. These EPS estimates are based on fiscal year 2016 estimated average diluted shares outstanding of approximately 150.4 million shares, and a 40.7 percent effective tax rate, which does not include federal and state tax credits that have not yet been extended or for which qualifications have not yet been established.

ICF International awarded $7M blanket purchase agreement by EPAICF International was recently awarded a re-compete, single-award blanket purchase agreement by the U.S. Environmental Protection Agency, Office of Air and Radiation, Climate Protection Partnerships Division. The contract has a term of five years, including one base year and four option years, and a value of $7.6M. ICF will continue to provide analytical and customer services to five CPPD programs: ENERGY STAR, State and Local Climate and Energy Program, State Utility Regulation and Clean Energy, Combined Heat and Power Partnership, and Green Power Partnership. The firm will also support the agency’s annual ENERGY STAR Products Partner meeting, which brings together utilities, retailers and manufacturers in one forum to help advance energy efficiency and increase its uptake across the nation.